Impact of LED Light on Indian Economy

Author: Nordusk

Sep 19, 2017

LED has been in the market for long. However, in a developing economy such as that of India, the use of LED lights by the general population is yet to become a popular trend. The Government has stepped up for the task with the latest project aiming towards changing 77 crores light bulbs and 3.5 crores conventional street lights and replacing them with the LED lights.

The mammoth LED task

The plan to change conventional lights with LED is no doubt a welcoming effort. However, given the expanse of the country and the huge population, there is no doubt that this is going to be one mammoth task in front of the Government. The challenge is quite steep, especially with LED lights still costing at least about 10 times that of the conventional lights. It will need proper planning and effective execution to make this a reality and to meet the target by March, 2019.

National planning for major savings

Currently the target is to change the 77 crores incandescent lights being used by the Indian households and encourage them to adopt the LED lights under the Domestic Efficient Lighting Programme (DELP). The Street Lighting National Programme (SLNP) aims to change the 3.5 crores conventional lights currently in use by the energy efficient LED lights. If successful, this step will bring down the annual power consumption of the entire nation by a whopping 21,500 MW, thus reducing 109 billion units of consumption and ensuring savings of Rs.45,500 crore in total, including the domestic users and the urban bodies. Needless to say, this huge savings will directly help in boosting the economy of the nation by making it possible to reroute the savings into other investment cycles and thereby gaining higher returns.

Shining the Make in India campaign

It is not mere savings that the Government is looking ahead while bringing in this major change. Such a huge change will need extensive production at a large scale of the LED lights to meet the demands generated. The Governments has used this opportunity to encourage the increase in domestic production of LED lights at low cost. Not only does this brings down the cost of the LED lights and thereby encourages more and more people across the nation to adopt the power saving alternative, it also boosts the Make In India project, that has been a flagship programme of the current Government of India aiming towards strengthening the country’s economy.

Global impact

India is among the nations that came together from across the world and pledged to reduce carbon emission and battle the global climate change catastrophe. This change will also boost India towards fulfilling the commitment under the Intended Nationally Determined Contribution (INDC) of reducing emission intensity per unit of GDP by 33 to 35 per cent within the year 2030.

The Final Statement- A greener world is a cleaner world

While LED lighting solutions are still costlier than the conventional alternatives, they offer much higher luminosity at much reduced power consumption. Reducing energy consumption will directly facilitate building a greener and cleaner tomorrow while ensuring higher savings.

Summary: Considering the long term benefits of LED lights, this is certainly a great investment. Its effect on Indian economy is positive from all aspects.

NORDUSK comes under the aegis of The Karuna Group. Karuna Group is a Kolkata based company with turnover of over 15 billion INR. The group is associated with Distribution, Retail and Financial Services and has ventured into the LED lighting segment in 2015...
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